Advanced Techniques in Day Trading: A Practical Guide to High Probability Day Trading Strategies and Methods

Stop Range

Stop Range orders allow you to set both a stop loss and a target price. When one of the prices is triggered, the other order is cancelled. This order type is also called a One-Cancels-the-Other (OCO) order or a Bracket order. The first part of the order — the stop loss — is set below the market price. The second part — the profit target — is set above the market price. This is a great way to let a trade pan out without having to actively manage it.

For example, I am long 100 shares of FB and the price is at $165. I intend to sell if the price falls to $163 and accept the loss. This is my stop order. I want to take profit if the price reaches $169. This is my sell order. When the price reaches one of these levels, the other order is cancelled immediately. To enter a Stop Range order:

1. Select STOP from the route dropdown
2. Select Range from the Stop Type dropdown
3. Enter 163 in the Lo Range
4. Enter 169 in the Hi Range
5. Press SELL

See Figure 2.16 below for a screenshot of these steps in the appropriate window in Montage.

Figure 2.16 – Example of how to enter a Stop Range order in Montage.